Snowflake (SNOW) shares surged 6.58% in after-hours trading on Wednesday following the release of its first-quarter fiscal 2026 results, which exceeded analyst expectations. The cloud-based data storage company reported its first-ever $1 billion revenue quarter, demonstrating robust growth in the face of ongoing economic uncertainties.

For the quarter ended April 30, Snowflake reported adjusted earnings of $0.24 per share, surpassing the consensus estimate of $0.21. Revenue came in at $1.04 billion, up 26% year-over-year and ahead of the $1.01 billion analysts had projected. Product revenue, a key metric for the company, also grew 26% to $996.8 million, beating Wall Street estimates of $962 million.

Looking ahead, Snowflake provided an optimistic outlook for the second quarter, forecasting product revenue between $1.035 billion and $1.040 billion, above the consensus expectation of $1.02 billion. This guidance suggests continued strong demand for Snowflake's data analytics services, particularly as enterprises prioritize artificial intelligence spending. The company's performance and outlook align with the positive trends observed in the broader software sector, where companies like ServiceNow, SAP, and Microsoft have also reported strong results amid ongoing investments in cloud and AI technologies.